Potential Cabinet Front Runners of Spain’s Incoming Prime Minister

By David Roman

Spanish Prime Minister-elect Mariano Rajoy has given few hints about his cabinet picks, other than that he will include some political independents and that the top posts will be finance and foreign affairs. He was recently quoted by Spanish media as saying that he had already decided who is going to be his finance minister, although he still has to make a formal offer to the chosen person. He may do so in coming days.

Potential front runners for top cabinet posts include:

Luis de Guindos: 51 years old. A deputy finance minister from 2002 to 2004, Mr. de Guindos is known to be a close advisor of Rajoy’s. Currently the head of a Madrid-based think tank, de Guindos is widely considered a solid front runner for the Finance Ministry, partly because he speaks good English, knows financial markets well and is a good communicator.

Josep Pique: 56 years old. A cabinet member for much of 1996-2004 under the Popular Party-led government of Jose Maria Aznar, he currently heads Catalonia’s Economic Circle think tank and could also come under consideration for finance minister. Mr. Pique has significant government and corporate experience, but most importantly, he is a Catalan with access to the financial and political elite of Spain’s wealthiest region, where the Popular Party is weakest. His appointment would also enhance the domestic perception that Mr. Rajoy is keen on appointing independent cabinet members with no political affiliation, as Mr. Pique left the PP several years ago.

Alberto Ruiz-Gallardon: 53 years old. Madrid’s mayor, and widely known in Spain as the man who vastly increased Madrid’s debt load to develop ambitious infrastructure projects that have transformed parts of the Spanish capital. Insiders speculate he could be appointed as industry or development minister, a move that would also enhance political perceptions that Mr. Rajoy is opting for moderate or centrist members of his party.

Cristobal Montoro: 61 years old. Treasury minister from 1996 to 2004, Mr. Montoro has remained within Mr. Rajoy’s inner circle during the last seven years, currently as the Popular Party’s spokesman for economic policy. His weak English-language skills are seen as a potential handicap, given the high demand of conference calls and meetings of euro-zone ministers that such a post entails.

Manuel Pizarro: 60 years old. He was Mr. Rajoy’s hand-picked shadow finance minister during the 2008 election, just before the Spanish economy collapsed under the weight of the once-mighty real estate sector. The campaign saw him losing in a televised debate with then-incumbent Pedro Solbes. He had gained visibility during the battle for control of electricity utility Endesa in 2006 and 2007. His extensive legal background places him as favorite for the Justice Ministry.

Jose Manuel Gonzalez-Paramo: 53 years old. The member of the European Central Bank’s executive board had the rare distinction of never ever straying from the official ECB line. His technocratic credentials put him as next year’s potential successor to central bank Governor Miguel Angel Fernandez Ordonez, who has been faced criticism that he was slow to tackle the solvency problems of Spain’s ailing savings banks.

Manuel Pizarro for the justice ministry ? You must be joking! He's the ablest business entrepeneur you have down the Pyrenees. Endesa, the utility he was the CEO, is a case study. He ear-marked the value of the share and he scored. Besides, he is flawless in his explanations whether they are about politics or economic matters. Saludos

Thanks for reading The Source. We would like to direct you to MoneyBeat, the Wall Street Journal’s brand new global blog. MoneyBeat unites MarketBeat, The Source, Overheard and all the Deal Journal blogs, bringing together all the market, M&A, IPO and hedge-fund news from those blogs into a 24-hour hub for finance news. Check it out and let us know what you think at moneyblog@wsj.com.